Davey & Anor v Lombard Asset Management (Bahamas) Ltd

Davey & Anor v Lombard Asset Management (Bahamas) Ltd

Clause 12(b) of the contract was a condition precedent to completion. The purchaser's inability to give the required VAT registration warranty on the contractual completion date entitled the vendor to delay completion and to compensation for the delay under clause 7.3.

Parties
Claimant/respondent: Davey & Anr; Defendant/appellant: Lombard Asset Management (Bahamas) Limited
Jurisdiction
England and Wales
Judgment Date
12 October 2006
Procedural Posture
Civil Appeal / Judgment on Appeal From Central London County Court
Outcome
Appeal dismissed
Legal Topics
Construction of Contract Terms, Condition Precedent, Warranties, VAT in Property Transactions, Delay in Completion
Contract Law Construction of Contract Terms Condition Precedent Warranties VAT in Property Transactions Delay in Completion

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Parties

Davey & Anr

Claimant/respondent

Lombard Asset Management (Bahamas) Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Judgment on Appeal From Central London County Court

Legal Issues

  1. 1 Whether the appellant was able to give the warranty required under clause 12(b) of the contract on the contractual date of completion
  2. 2 Whether the respondents were entitled to delay completion of the sale until the appellant was registered for VAT purposes
  3. 3 Whether delay in completion entitled the respondents to compensation under clause 7.3

Ratio Decidendi

Clause 12(b) of the contract was a condition precedent to completion. The purchaser's inability to give the required VAT registration warranty on the contractual completion date entitled the vendor to delay completion and to compensation for the delay under clause 7.3.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Judgment for respondents for sum just under £10,000 plus interest